UP TO 80 jobs are to go at lipsticks and ladies' compacts firm RPC Cresstale.
The cosmetics packaging company blamed the losses on the downturn in manufacturing affecting much of the UK.
The company operates from two sites in Thornaby, Teesside,one for lipsticks, the other for compacts, but intends to operate from one unit for the foreseeable future.
RPC Cresstale's general manager, Paul Cope, said he was forced to cut staffing levels from 375 to save the rest of the jobs.
He said: "Everyone knows manufacturing has had a rough time.
"We are not immune to this. Increased competition from Europe and the Far East has necessitated a review of the company's operations.
"We have to try to protect as many jobs as we can in this industry. It is not an easy decision to make, nobody likes doing it."
RPC Cresstale exports its cosmetics packaging products across Europe.
In the UK, it has a high-profile customer base that includes Revlon, Boots, Procter and Gamble, and Avon.
It was acquired by the market-leading packaging experts RPC Group nearly two years ago for £8m.
Mr Cope did not rule out a return to full staffing if the market improved.
He said: "We are retaining our other site capability so that when the upturn comes, we will be able to move back in very quickly. This is an industry where we have to react very quickly to demand."
The company has started a 30-day consultation period and has hired a firm to help redundant workers find jobs.
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